Trump and Musk Set Their Sights on Fort Knox: Insights into the $400 Billion Gold Reserve and Dogecoin Trends

Overview

This week, Elon Musk, the world’s wealthiest individual and leader of the influential Department of Government Efficiency (DOGE), along with President Donald Trump, reignited long-standing theories surrounding the status of the U.S. gold reserves located at Fort Knox. Trump pledged to conduct an unusual inspection of the highly secured site.

The U.S. Bullion Depository in Fort Knox, Kentucky.

Bettmann Archive

Essential Information

Starting Saturday, Musk took to social media to express doubts regarding the government’s notorious gold reserves at Fort Knox, inquiring whether the gold is “still there” or “missing” and even requesting a “live video tour” of the facility.

Senator Rand Paul, R-Ky., reacted affirmatively to Musk’s call for annual inspections of Fort Knox, stating, “let’s do it.”

Trump joined the conversation late on Wednesday, informing reporters that, “We hope everything’s fine with Fort Knox, but we’re going to go to Fort Knox… to ensure the gold is there.”

“If the gold is missing, we will be very disappointed,” Trump further emphasized.

Although there is no evidence substantiating claims of absent gold, the details surrounding the reserve remain heavily restricted.

The U.S. Bullion Depository in Fort Knox, Kentucky, contains 147.3 million troy ounces of gold, representing approximately 59% of the overall Treasury gold supply, according to the U.S. Mint.

With the current market price of gold exceeding $2,940 per troy ounce on Tuesday, the value of the gold in Fort Knox amounts to approximately $434 billion, surpassing the market valuation of Europe’s leading public company, LVMH, which owns Tiffany & Co.

Conversely, the government values the gold stored at Fort Knox at a mere $6 billion, based on a government-mandated book value of $42.22 per troy ounce.

Main Skeptic

The official overseeing the gold reserves, Treasury Secretary Scott Bessent, dismissed the skepticism expressed by Trump and Musk regarding Fort Knox during a Thursday interview with Bloomberg. “We conduct audits every year, and I can assure Americans that all the gold is present,” Bessent noted, referencing an audit carried out in September.

Visits to Fort Knox’s Gold Reserves

The Fort Knox depository has only permitted visits from unauthorized personnel on three occasions: in 1943 for President Franklin D. Roosevelt, in 1974 for a delegation of 10 Congress members to clear away “cobwebs” and “reassure” the public about the integrity of their gold reserves, and in 2017 for a group that included Senator Mitch McConnell, R. Ky., and then-Treasury Secretary Steven Mnuchin. Following his visit in 2017, then-Governor Matt Bevin, R. Ky., stated, “It is exceedingly secure.” “The gold is protected,” Bevin affirmed. The skepticism expressed by Musk regarding whether the Fort Knox gold supply aligns with government records echoes similar sentiments; a New York Times piece from the 1974 visit carried the headline “Visitors Get a Peek at Fort Knox Gold—It’s There.”

U.S. Gold Reserves

The U.S. government holds the title of the primary custodian of gold globally, with reserves totaling 8,133 metric tons, more than double that of the next largest holder, Germany. Moreover, these reserves account for nearly 4% of the total above-ground gold supply worldwide, as noted by the World Gold Council.

Noteworthy Quote

“I believe the gold is indeed present,” stated former Rep. Ron Paul, father of Senator Paul, in an interview with the Gold Telegraph released Saturday. However, questions persist regarding the ownership of the reserves due to significant borrowing practices and other financial manipulations. The elder Paul has consistently advocated for a Fort Knox audit, proposing the “Gold Reserve Transparency Act” in the House in 2011.

Purpose of Gold at Fort Knox

Constructed in the 1930s, the U.S. Bullion Depository was established to provide a centralized and secure location for a significant portion of the government’s gold reserves. The choice of its Kentucky location stemmed from concerns over the vulnerability of existing reserves along the East Coast to potential foreign attacks amidst the looming threat of war in Europe. From 1941 to 1944, the facility also housed the Constitution and Declaration of Independence.

Additional Context

This renewed public focus on U.S. gold reserves coincides with a remarkable rise in gold prices, making it an increasingly sought-after asset on Wall Street. In the past year alone, gold prices have surged over 40% and 10% since the start of the year, surpassing the performance of major U.S. stock indices as investors seek safety amidst rising government debt and inflationary pressures.